China’s Shibor interbank rates rise to 1.823%

China’s short-term interbank borrowing costs rose on Monday, with the overnight Shanghai Interbank Offered Rate (Shibor) increasing by 1.7 basis points to 1.823 per cent, Xinhua reported.

However, the more substantial rise came in the seven-day Shibor rate, which jumped 12.9 basis points to 2.08 per cent. This suggests a potential tightening in short-term liquidity conditions within China’s interbank market.

Rates for longer-term maturities also saw modest increases. The one-month Shibor rose 1.2 basis points to 1.962 per cent, while the one-year Shibor climbed 2.5 basis points to 2.112 per cent.

The Shibor is a crucial indicator of interbank lending activity in China. It reflects the average interest rate that banks charge each other for borrowing yuan (RMB) for different timeframes.